The Central Board of Indirect Taxes and Customs (CBIC) on November 08, 2024, issued the Clarification on Insurance Amount and Bond Value for CCSPs and validity of Bond for AEO-LO.
The following has been stated:
• It has been decided to partially modify the earlier Circular No. 42/2016-Customs dated August 31, 2016 with regard to Regulation 5(1)(iii) of HCCAR, to lay down that the amount of insurance to be provided by CCSPs should be equal to the average value of goods likely to be stored in the Customs area for a period of 5 days (based on projected capacity) and for an amount as Commissioner of Customs may specify having regard to the goods that are already insured by the importers or exporters. Corresponding changes have also been carried out in Regulation 5(3) of HCCAR, 2009 vide Notification No. 75/2024-Customs (N.T.) dated November 07, 2024 to reduce the value of custodian bond being furnished in respect of imported/export goods to the extent of 5 days storage from the current 10 days as stipulated in Notification No. 115/2016-Customs (N.T.) dated August 26, 2016.
[Notification No 22/2024-Customs]
